Sometimes an Asset has to be replaced before it's Tax Life is completed. For example, Roof on a Rental Property is depreciated at 27.5 years of Tax Life. Actual usage could be less.
If the Roof is replaced before 27.5 years of usage, the Asset is written down to value 0. There is a Form for Write Down. The Value of the Write Down is calculated there and then transferred to 1040.
The New Roof with the Actual Cost of the Roof is depreciated starting on the Day of installation.
Turbotax Home and Business Version will do these adjustments and bring in the associated forms through the Interview Process.
